City hotels battle to cope with post-Culture slump; More empty rooms as tourist figures tumble.

Byline: NEIL HODGSON 

LIVERPOOL hotels are feeling the chill after comparisons with a successful Capital of Culture year.

The effects of the credit crunch are also taking their toll after new figures from PKF Hotel Consultancy Services show a widespread fall in business during May, compared with the same month in 2008.

Average daily room rates across Liverpool, which is the revenue divided by the total number of rooms occupied, dropped 11.9% to pounds 67.19; occupancy rates, or the ratio of occupied rooms to those available, deteriorated by 8.2%; and room yields, which is occupancy multiplied by the average achieved room rate, tumbled by 19% to pounds 48.24, compared with May, 2008.

The research also showed that Manchester, which along with Chester benefited to a certain extent from Liverpool's Capital of Culture status as visitors targeted the "North West tourism triangle", also suffered with room yields falling 15.2%, occupancy by 6% and room rates by 9.8%.

The same was broadly true across the UK regions where occupancy showed a 5.5% decline to 69.9%; room rates falling from pounds 77.70 to pounds 70.24 and rooms yield dropping by 14.6%.

Only London, which enjoys year-round appeal with tourists, showed an increase in occupancy, up from 80.9% to 81.2%.

Jane Jackson, partner and head of tax at PKF's Liverpool office, said: "The story continues in May on a similar vein to April.

"The economic climate means that hoteliers are having to reduce their rates in order to attract visitors and this is affecting rooms yield. With the summer holiday season beginning, hopefully we may see some better regional results if families, as predicted, do indeed choose to holiday in the UK this year."

Liverpool has seen a hotels boom over the past decade with construction bidding to match demand the region's regeneration coincided with a marked increase in overseas and domestic visitors.

One of the latest additions set to boost Liverpool's existing hotel stock will be the new pounds 60m Hilton in the pounds 1bn Liverpool One complex.

Due to open this October, the Hilton will add 216 rooms to the city's stock.

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Ex-Beatle Ringo Starr opens Liverpool's Capital of Culture year on St George's Hall Picture: DAVID RAWCLIFFE